Business

Jun 4, 2012 | 04:00

U.S. Day Ahead: G7 emergency call; Eyes on Fed

June 4 - G7 countries hold emergency talks on the European debt crisis. Reuters Economics and Markets Editor for the Americas William Schomberg says it is an opportunity for Germany to show some flexibility.

TRANSCRIPT +

Investors either way back into risk trade today buying some stocks selling bonds but concerns out of bounds. Following more weak economic news in the US and Europe remains an issue -- with the White House saying that markets remain skeptical. About Europe's efforts to prevent the Euro debt crisis from deepening. Finance leaders from the US and other G-7 countries hold emergency talks tomorrow on the European debt crisis. Letters economics editor for the Americas bill Schneider joins me now bill what these talks supposed to accomplish. Why are they being held now. What is typical citizens accomplish anything -- in practice it maybe away from other countries to put pressure on Germany's so more flexibility. And his approach to dealing with the it was a crisis Germany's taken -- -- phone line austerity has to be the way through this crisis is so. Now that it the United States is currently chairing the G-7. And there are concerns within the Obama administration we note. That the situation in Europe is inherent in the US economy which -- -- him you know -- -- President Obama's connection. Campaign. Yet just a bad are things in Europe we know the markets are really -- step. Dead -- in the eurozone crisis being dragged you know from warranty is now not many of the country's either in recession -- close to it. And adding to that recently have been signs of old money leaving some of the banking systems of of the country's. Lesson on school not just talk about -- the obvious signs of nervousness. And tools of mine from from Spain spirit so that reassignment. Of good things very seriously. The existing infrastructure that you had snow perhaps best. -- as a hook with a common problem among the hence isn't just it was something. Does Robert thanks for that. Three Federal Reserve presidents Charles Evans James Bullard and Richard Fisher all speak tomorrow. Writers correspondent -- to Costas says after last week's stunning jobs report. The change -- tone in some of their comments. Tomorrow's fed speakers kind of run the gamut from dovish and hawkish on the one side you have. Charles Evans from the Chicago fed and on policy -- who is. That's quantitative easing in the past and he's likely to kind of get back on the camp of pushing for QE3 at this point given the latest jobs numbers. Jim Bullard from the Saint Louis fed is kind of a wild card. He's somewhere in between favoring further easing in and in calling for the Fed to wait and see so he'll be a good bellwethers the direction of fed policy. And lastly we have Richard Fisher from the Dallas said he tends to be very hawkish. And is omelet and likely to be swayed by the latest numbers in terms of favoring any further policy action. Also on the docket tomorrow the ISM services I have -- expects this is small bounce and may. With the index rising half a point to 54. Economists predicted business activity in new orders we'll have slightly improved for the month. And Warren Buffett chairman and CEO Berkshire Hathaway speaks the economic club in Washington DC. A crucial test is shaping up for Republicans are going Wisconsin in the land of the cheese adds. Governor Scott Walker faces a recall election on Tuesday which many political pundits are viewing as a semi final match. Leading to the presidential race in November a walker victory could indicate which way the political winds are blowing. Last year walker angered Democrats and unions by eliminating most collective bargaining. And here is our image of today you're looking at a -- celebrating the queen's jubilee with the London -- in the background. -- all the celebrations Prince Philip was hospitalized Monday with -- bladder infection. The queen's husband who turns 91. On Sunday we'll miss a concert tonight and it carriage procession on Tuesday. The palaces he is disappointed. That's US stay ahead follow us on Twitter writers and -- and also check out our TV channel at Reuters dot com. I'm Rhonda -- this is writers.

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